The Impact Of Fiscal Expenditure On Resident Income

Since China’s reform and opening up,China’s rapid economic growth,but the increase of people’s income level has not kept pace with the growth of economic development,and problems such as the large gap between the rich and the poor and unfair income distribution have become increasingly apparent.As an important way of transmission between social tax departments and resident departments,fiscal expenditure is an important guarantee to determine the income level of residents and the well-being of people.The government needs to constantly improve and improve the existing fiscal expenditure policy,which will help promote economic development and the level of income.Based on the panel data of 284 prefecture-level cities in China from 2000 to 201 9,this thesis examines the impact of our fiscal expenditure policy on the income level of residents.The results show that the scale of fiscal expenditure in our country has a significant positive effect on residents’ income.At the same time,this thesis further studies the impact of different fiscal expenditure structure on household income.Infrastructure Expenditure,education expenditure and health expenditure can significantly promote the increase of residents’ income,while Social Security,employment expenditure and expenditure on agriculture,forestry and Water Conservancy have no significant impact on residents’ income.The policy implication of the research conclusion is:the government should expand the scale of fiscal expenditure,optimize the structure of fiscal expenditure,strengthen the proportion of fiscal investment in the fields of infrastructure,education and health care;To reduce the tax burden properly,improve the wage system and other measures,so as to promote the level of our residents’ income.